PRA warns of inevitable price spikes

The Philippine Retailers Association (PRACebu) warned consumers of an inevitable increase in the prices of basic commodities and other products, as cost of doing business is much higher now.

The implementation of TRAIN-1, which added tax duties to sugary products, fuel, among others is just one of the factors that affect the price hike, said PRA-Cebu president Robert Go.

Go, who also owns Prince Hypermart chain in Visayas and Mindanao, said price increase of most products are inevitable because aside from tax reform, upward movements of logistic cost, and foreign exchange rate also have impact on the movement of prices.

The stronger dollar also contributes largely to the price hike, such that cost of imported products like milk, beef, canned goods, and other products that are sourced abroad.

Also, most consumer goods like makers of shampoo, soaps have slowly transferred their manufacturing plants to Thailand, Vietnam, Cambodia or China, causing the increase of prices in most consumer goods.

Certainly, the tax reforms have something to do with higher inflation, but there are also other factors that are to be blamed, he explained.

The failure of the Philippines to be self-sustain its rice also adds to high cost of living, as the country is still importing large volume of rice from neighboring Asian countries.